A California debt collection company accused of trying to intimidate debtors has reached a settlement with federal regulators that would require it to stop using district attorneys’ letterheads and threatening criminal punishment while seeking payments, a newspaper reported.
National Corrective Group would have to cease the practices as part of a settlement announced last week with the federal Consumer Financial Protection Bureau, the San Francisco Chronicle reported Monday.
“National Corrective Group masqueraded as prosecutors and used deceptive tactics to intimidate consumers into paying hundreds of dollars in extra fees to avoid potential criminal prosecutions,” bureau director Richard Cordray said in a statement.
The proposed settlement still requires court approval.
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